For the first time, a United Nations treaty will be named after Singapore, The Straits Times reports.
The Singapore Convention on Mediation, an agreement covering corporate contract law, is set to be signed right here in August of 2019.
The treaty aims to fix a longstanding obstacle for commercial entities from different countries — and different legal systems — doing business together. While plenty of companies from different places carry out projects across borders, a sticking point can occur when legal conflicts crop up.
Take for example, a dispute between an Indian manufacturer and an Australian distributor. If an Indian arbitrator in a Delhi court settles the conflict, can the Australian company decide not to comply with terms of the judgment it finds inconvenient?
The Singapore Convention permits business agreements decided by international mediators to be enforced in any contracting state, according to TODAY.
And according to Law and Home Affairs Minister K. Shanmugam, Singapore, which played a role in negotiations, is the ideal place for this particular treaty.
“We are top quality in arbitration, and now we have a mediation product as well,” said Shanmugam, ST reported.
“Anytime people talk about mediation, they will look up the international treaty and they will know there’s a Singapore Convention.”
While the upcoming convention will be a milestone Singapore, the republic is no stranger to international business treaties.
The Singapore Treaty on the Law of Trademarks was established in 2006 under the World Intellectual Property Organization, a United Nations specialized agency according to TODAY. The 2019 agreement will have a wider reach.